In the last session of the week, stocks at Pakistan Stock Exchange (PSX) experienced a surge, driven by IMF statements.
Throughout the trading session, the KSE-100 index continuously gained value, with both share volume and value significantly increasing compared to the previous day. Capital Stake, a brokerage firm, reported that investors were optimistic about a favorable outcome concerning the new IMF conditions. This optimism led the benchmark index to reach an intra-day high of 66,067.53.
The KSE-100 ultimately closed at 65,793.76, marking a 0.29% increase or 190.67 points.
During trading, notable index-heavy stocks such as OGDC, PSO, CNERGY, and SHEL experienced positive growth. In a significant update, the IMF announced its readiness to send a mission to Pakistan for the second review of the Stand-by Arrangement (SBA) once a new cabinet is formed.
Additionally, the IMF expressed willingness to develop a new, medium-term program if the Pakistani government requests it. Concurrently, Prime Minister Shehbaz Sharif assured that the ruling coalition’s presidential candidate, Asif Ali Zardari, would secure a substantial majority on March 9th.
On Thursday, the KSE-100 index concluded another trading session with minimal fluctuations, as both share value and volume experienced a decrease compared to the previous day. The index settled at 65,603.09, representing a 0.08% decline or 53.53 points.
Concurrently, Asian stocks reached a seven-month peak on Friday, following global market trends as investors celebrated the potential commencement of an easing interest rate cycle led by major central banks. This positivity kept the dollar and Treasury yields under pressure. However, Japan stood out as anticipation grew that the Bank of Japan (BOJ) might finally discontinue negative interest rates in the current month.
The expectation of rate changes ignited a surge in the yen’s value and caused domestic bond yields to rise. MSCI’s comprehensive index of Asia-Pacific shares outside Japan reached its highest point since August, peaking at 538.47 in early Asian trade. The index was then up by 1%, targeting a nearly 2% weekly gain. Meanwhile, the Pakistani rupee demonstrated another increase against the US dollar in the inter-bank market on Friday. Closing at 279.04, the local currency appreciated by Re0.25 compared to the US dollar, as reported by the State Bank of Pakistan. Trading volume on the all-share index expanded, rising from 354.15 million in the previous session to 481.7 million.
The value of shares experienced a significant improvement, rising from Rs14.4 billion in the previous session to Rs16.99 billion. K-Electric Ltd emerged as the volume leader, trading 59.08 million shares. Cnergyico PK followed closely with 51.47 million shares, and Kohinoor Spining ranked third with 45.95 million shares. Among the 357 companies traded on Friday, 208 witnessed growth, 119 experienced declines, and 30 maintained stable positions without any change.
